The Volvo Group has begun the process to build a large-scale production plant for battery cells in Sweden.

An extensive site localisation study has been conducted.

According to the company, this study showed the Skaraborg region to be a suitable location for the facility.

The proposed site in the municipality of Mariestad is located close to the company’s present main powertrain facility in Skövde.

The facility will stand to benefit from the region’s current industrial and logistics infrastructure and have access to the country’s supply of fossil free energy.

The Volvo Group’s R&D centres and headquarters in Gothenburg are also about two hours away.

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Volvo Group CEO and president Martin Lundstedt said: “We aim to lead the transition to a decarbonized transport system and have the long-term ambition to offer our customers solutions that are 100% fossil free. There is a strong demand from our customers already today, and by 2030, it is our ambition that at least 35% of the products we sell are electric.

“This ramp-up will require large volumes of high-performing batteries, produced using fossil free energy and it is a logical next step for us to include battery production in our future industrial footprint. We aim to do this together with partners and the journey starts now.”

The Volvo Group intends to gradually boost capacity and achieve large-scale series production by the end of this decade.

The battery cells will be designed particularly for commercial vehicle applications.

Upon receipt of approvals from relevant authorities, the production site will be set up.

The final localisation of the plant will be determined only after holding a public consultation. Its operations are also subject to environmental permits.

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Image: The battery cells at the plant will be designed particularly for commercial vehicle applications.Credit: Marie Sjödin from Pixabay.